The classic should you buy a solar panel or lease it? The question demands the evaluation of your objectives. This means asking yourself what you want to do with it. Do you just want to use the power of renewable energy or are you also trying to reduce your federal tax liability? Let’s not rush here! There are several points to consider before making a decision about buying or leasing solar panels. So, let’s try to clear the smoke screen and find out which would be the best option for you.
Why should you buy solar panels?
In addition to reducing your energy bills by up to 30 percent, solar energy can lower your taxes. The federal investment tax credit would help lower your taxes if you decide to buy and install a solar panel. If you are thinking of going green with solar for your business, you can present it as a depreciated asset and deduct taxes. Buying is also a great idea for people who are thinking of selling their houses in the near future and want to use solar panels to get better prices.
As you sort products, consider installation charges, which can range from $ 15,000 to $ 30,000. However, rebates may reduce the cost a bit. You also have to take care of maintenance, which rarely puts pressure on your finances. Checking the warranties and protection facilities when buying solar panels would be a good idea for you. Hopefully that will cover your repair and maintenance requirements.
Is it better to rent than to buy?
In some cases, yes! If you don’t want maintenance responsibilities or if you are testing solar systems for the first time, then you should go for the leasing option. In this scenario, the service providers will check your solar panels and take care of their maintenance (if necessary). Leasing is fairly affordable, and with maintenance out of the picture, you can assess the benefits of green energy with little to no responsibility other than making monthly payments to the leasing provider.
You should be aware that leasing does not offer the benefits of tax credits. Therefore, the chances of taxes being reduced are nil with this option. In addition, the reduction in the cost of energy would be comparatively less in the lease option than in the purchase. If buying panels can save you more than 30 percent on energy bills, then you won’t get more than 10 percent savings through leasing. However, at the end of the lease, you can upgrade the systems for better performance and savings. That’s something to look forward to, right?
Regardless of your choice, you would save money by opting for renewable energy as charges for traditional electricity increase. So, evaluate your requirements first, speak to professionals if necessary, and only then make a decision. How you will contribute to the planet when you harness the power of the sun is not a small advantage either.
